positive-and-negative-effects-of-globalization资料讲解.doc

Globalization

Globalization refers to the absence of the walls of matchboxes that every country had, between themselves based on suspicion, mutual distrust and ambition. We were different countries, in fact divided into worlds, and therefore could never manage to deal with natural holocausts and deadly epidemics, which time and again challenged us. Globalization has strengthened the nexus and has helped us to know each other’s need in a better way. It has helped to demolish those walls that separated us and curbed our natural identity of being fellow human beings. Globalization has primarily become a fiscal term but its impact is not limited to the economy of the countries only, the term globalization actually refers to every aspect of life like cultural, social, psychological and of course, political.

It is true that the impact of globalization is visible and affects largely the politics and the economy of the country but its effect on the mindset and the culture is noticeable gradually in the way people think and react. It’s like the Iceberg theory wherein what we do and say are at the tip and what we think and believe is at the base. The base is not visible but manifestations at the top are conspicuous. It applies here as well where people do not change abruptly but may be after a decade the change starts showing and seems radical.

Arjun Kulkarni
Positive Effects of Globalization

It would be rather difficult to discuss the extent of the positives that globalization has had on the world at large. But still, here are some of the positive effects of globalization and the positive impacts they have had on so many demographic segments of society.

Increased Competition
One of the most visible positive effects of globalization is the improved quality of products due to global competition. Customer service and the 'customer is the king' approaches to production have led to improved quality of products and services. “As the domestic companies have to fight out foreign competition, they are compelled to raise their standards and customer satisfaction levels in order to survive in the market.” Besides, when a global brand enters a new country, it comes in riding on some goodwill, which it has to live up to. This creates competition in the market and a 'survival of the fittest' situation.

Employment
With globalization, companies have forayed into the developing countries and hence generated employment for them. But it is one of the positive and negative effects of globalization, depending on the point of view you wish to see it from. It has given an opportunity to invest in the emerging markets and tap up the talent which is available there. In developing countries, there is often a lack of capital which hinders the growth of domestic companies and hence, employment. In such cases, due to global nature of the businesses, people of developing countries too can obtain gainful employment opportunities. But the developed countries have lost jobs on account of this movement of jobs to the developing world and hence it is a pinch felt by people in the First World.

Investment and Capital Flows
One of the most visible positive effects of globalization in India is the flow of foreign capital. A lot of companies have directly invested in India, by starting production units in India, but what we also need to see is the amount of FII that flows into the developing countries. Indian companies which have been performing well, both in India and off the shores, will attract a lot of foreign investment, and thus pushes up the reserve of foreign exchange available in India. This is also one of the positive effects of globalization in US and other developed countries as developing countries give them a good investment proposition.

Foreign Trade
While discussing the positive effects of globalization, how can I leave out the impact of foreign trade on an economy. Comparative advantage has always been a factor even in the old times. While trade originated in the times of early kingdoms, it has been institutionalized due to globalization. Previously, people had to resort to unfair means and destruction of kingdoms and countries to get what they wanted. Today, it is done in a more humane way, with mutual cooperation. People who operate in uncivilized ways, now have to face the WTO and other world organizations that have been established with a view to control and regulate the trade activities of the countries.

Spread of Technical Know-How
While it is generally assumed that all the innovations happen in the Western world, due to globalization, the know-how also comes into developing countries due to globalization. Without globalization, the knowledge of new inventions, medicines would remain cooped up in the countries that came up with them and no one else would benefit. But due to improved political ties, there is a flow of information both ways. And this point - the spread of know-how, can also be expanded to include economic and political knowledge, which too has spread far and wide. The most obvious example of the spread of knowledge is that the Western world today are waking up to the benefits of Ayurveda and Yoga, while the Western antibiotics and flooding the Indian markets improving the quality of life (and the longevity too) of people in India.

Spread of Culture
The positive effects of globalization on culture are many! Not all good practices were born in one civilization. The world that we live in today is a result of several cultures coming together. People of one culture, if receptive, tend to see the flaws in their culture and pick up the culture which is more correct or in tune with the times. Societies have become larger as they have welcomed people of other civilizations and backgrounds and created a whole new culture of their own. Cooking styles, languages and customs have spread all due to globalization. The same can be said about movies, musical styles and other art forms. They too have moved from one country to another, leaving an impression on a culture which has adopted them.

Spread of Education
One of the most powerful positive effects of globalization on women and men both is the spread of education. Today, you can move in the search of the best educational facilities in the world, without any hindrance. A person living in US can even go to another continent for a new experience and some courses which one may not find in the home country. If one is interested, one can even get a specialization in subjects indigenous to a country and spread that knowledge to the home country. A good example of that is how the American managers went to Japan to learn the best practices in the field of mass production and incorporated that knowledge in their own production units.

Legal and Ethical Effects
Gone are the days where the limited jurisdiction became a hindrance in the prosecution of criminals. These days due to international courts of justice, these criminals can no longer seek asylum in a foreign country, but will be brought forward and there will be justice. Due to globalization, there is also an understanding between the security agencies and the police of two or more different countries who will come together to curb global terrorism. Hence, it is now possible to catch the perpetrators of crime irrespective of which country they choose to hide in. This is undoubtedly one of the greatest positive effects of globalization on society.

Organizations for Environmental and Social Concerns
In cognizance of the damage that has been caused to our world over the years, the individual nations have decided to come together to find a way to save our world from ourselves. Organizations monitoring climate change as well as those which look at the welfare of our animals and marine life, are undoubtedly one of the positive effects of globalization on the environment.

The negative effects of globalization

Opponents of globalization point out to its negative effects. Some of them are listed below.
Developed nations have outsourced manufacturing and white collar jobs. That means less jobs for their people. This has happened because manufacturing work is outsourced to developing nations like China where the cost of manufacturing goods and wages are lower. Programmers, editors, scientists and accountants have lost their jobs due to outsourcing to cheaper locations like India.
Globalization has led to exploitation of labor. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods.
Job insecurity. Earlier people had stable, permanent jobs. Now people live in constant dread of losing their jobs to competition. Increased job competition has led to reduction in wages and consequently lower standards of living.
Terrorists have access to sophisticated weapons enhancing their ability to inflict damage. Terrorists use the Internet for communicating among themselves.
Companies have set up industries causing pollution in countries with poor regulation of pollution.
Fast food chains like McDonalds and KFC are spreading in the developing world. People are consuming more junk food from these joints which has an adverse impact on their health.
The benefits of globalization is not universal. The rich are getting richer and the poor are becoming poorer.
Bad apects of foreign cultures are affecting the local cultures through TV and the Internet.
Enemy nations can spread propaganda through the Internet.
Deadly diseases like HIV/AIDS are being spread by travellers to the remotest corners of the globe.
Local industries are being taken over by foreign multinationals.
The increase in prices has reduced the governments ability to sustain social welfare schemes in developed countries.
There is increase in human trafficking.
Multinatonal Companies and corporations which were previously restricted to commercial activities are increasingly influencing political decisions.
The positive aspect of globalization

Globalization has a positive side as well. Supporters of globalization argue that it is good and beneficial. Some of their arguments are listed below.
Globalization has created the concept of outsourcing. Work such as software development, customer support, marketing, accounting and insurance is outsourced to developing countries like India. So the company that outsourced the work enjoys the benefit of lower costs because the wages in developing countries is far lower than that of developed countries. The workers in the developing countries get employment. Developing countries get access to the latest technology.
Increased competition forces companies to lower prices. This benefits the end consumers.
Increased media coverage draws the attention of the world to human right violations. This leads to improvement in human rights.

http://www.learningpartnership.org/resources/facts/globalization

Globalization Facts & Figures
Inequitable Distribution
Among the 4.4 billion people who live in developing countries
THREE-FIFTHS have no access to basic sanitation
Almost ONE-THIRD are without safe drinking water
ONE-QUARTER lack adequate housing
ONE-FIFTH live beyond reach of modern health services
ONE-FIFTH of the children do not get as far as grade five in school
ONE-FIFTH are undernourished
The 3 RICHEST PEOPLE in the world own assets that exceed the combined gross national product of ALL LEAST DEVELOPED COUNTRIES and their 600 million people.
The richest 20% of the world’s population enjoys a share in global income that is 86 times that of the poorest 20%.
More than 1.2 billion people in the world live on less that $1 a day. More than 50% of them are children. Nearly 1 billion cannot meet their basic consumption requirements.
The assets of the 200 richest people are more than the combined income of 41% of the world's people.
A yearly contribution of 1% of their wealth or $8 billion could provide universal access to primary education for all.
Industrialized countries hold 97% of all patents, and global corporations hold 90% of all technology and product patents.
Over 80% of foreign direct investment in developing and transtition economies goes to just 20 countries, with China receiving the maximum share.
Debt relief for the 20 worst affected countries would cost between US $5.5 billion to $7.7 billion, LESS than the cost of ONE stealth bomber.
Inequitable Consumption
Basic education for all would cost $6 BILLION a year;
$8 BILLION is spent annually for cosmetics in the United States alone.
Installation of water and sanitation for all would cost $9 BILLION plus some annual costs; 
$11 BILLION is spent annually on ice cream in Europe.
Reproductive health services for all women would cost $12 BILLION a year; 
$12 BILLION a year is spent on perfumes in Europe and the United States.
Basic health care and nutrition would cost $13 BILLION; 
$17 BILLION a year is spent on pet food in Europe and the United States.
$35 BILLION is spent on business entertainment in Japan; 
$50 BILLION on cigarettes in Europe; 
$105 BILLION on alcoholic drinks in Europe; 
$400 BILLION on narcotic drugs around the world; and 
$780 BILLION on the world's militaries.
20% of the world's people in industrialized countries account for 86% of total private consumption expenditures,
while the poorest 20% account for 1.3%
The overall consumption of the richest 20% of the world’s people is 16 times that of the poorest 20%.
The share of the poorest 20% of the world's people in global income is 1.1%, down from 1.4% in 1991.
There are 16 cars per 1,000 people in developing countries and 405 cars per 1,000 people in industrialized countries.
On average, developing countries have one doctor for every 6,000 people whereas industrialized countries have one for every 350 people.
Sources: United Nations Development Programme, Human Development Report 2000 (New York: Oxford University Press, 2000); Human Development Report 1999 (New York: Oxford University Press, 1999); Human Development Report 1998 (New York: Oxford University Press, 1998).